The Special Investigating Unit (SIU) has recommended that the company awarded a tender to build controversial temporary shacks in Tzaneen, Limpopo, be barred from doing business with the government.
Giving a progress report into the investigation regarding Covid-19 expenditure to the standing committee on public accounts on Wednesday, SIU head Adv Andy Mothibi said the unit has recommended that Aventino Group CC be blacklisted.
“The SIU has recommended that the Housing Development Agency (HDA) requests National Treasury to place the above entity [Aventino Group CC] and director [Constance Mohlala] on the database [of restricted suppliers] after having followed the administrative process. The matter has been escalated by the HDA to Treasury for consideration,” Mothibi said in his presentation.
The 40 “low-cost housing” units cost the taxpayer R64,000 each.
The brown tin shack structures known as transitional residential units (TRUs) initiated by the agency of the department of human settlements were meant to accommodate hostel dwellers and flood victims to curb the spread of Covid-19.
Though HDA spokesperson Katleho Moselakgomo had promised to respond to Sowetan's questions, she had not done so at the time of going to print, saying she was waiting for approval from her seniors.
Mohlala, 47, who was arrested for allegedly submitting fraudulent documents, is facing criminal charges.
She and six other people, including HDA official Raymond Maoto, 35, will stand trial this month, the National Prosecuting Authority told Sowetan on Thursday.
Spokesperson Mashudu Malabi-Dzangi said: “Our investigations have been completed and we are ready for the trial to start on September 20. A total of seven suspects, including four members of the bid evaluation committee, are set to appear in court.”
She said members of the committee allegedly vouched for the company to construct the housing units without thoroughly checking the validity of the documents that were submitted.
The company was also awarded a similar tender to the tune of R10m to build shacks in Apiesdoring, Burgersfort.
However, some of the complete and incomplete shacks were removed by the company before they could be occupied.
“The total number of shacks was 192 and 52 toilets to the tune of R15m but the amount which was paid is R2.4m for both Talana and Appiesdoring in Burgersfort,” she said.
Premier Stan Mathabatha cut the ribbon to launch the controversial shack settlement and received a backlash.
His office later said Mathabatha did not know he was going to the area to unveil shacks.
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